New Bank of England governor Mark Carney gave households and businesses a
boost today as he said interest rates will remain at their record low until
unemployment falls below 7 per cent.

Unveiling a new strategy of forward guidance, the Bank of England said rates will remain at 0.5 per cent until at least the end of 2016 unless inflation rises sharply.

New Governor Mark Carney said that "a renewed recovery is now under way" as the Bank predicted 0.6 per cent growth in the third quarter and said inflation is unlikely to rise above 3 per cent this year - lower than previous fears of a peak of around 3.5 per cent.